Pitt Street Research Issues Updated Report on Achiko AG’s Business Expansion Towards COVID-19 Testing

SYDNEY, Australia, Oct. 01, 2020 (GLOBE NEWSWIRE) -- Pitt Street Research, based in Sydney, Australia has issued an updated report on Achiko AG (SWX: ACHI) (ACHI.SW) (ISIN: CH0522213468) (the “Company”) and its business expansion towards COVID-19 testing with the Company’s Gumnuts and corresponding Teman Sehat (“Health Buddy”) ecosystem.

To view the October 1, 2020 Updated Report, visit: https://www.pittstreetresearch.com/achiko

Summary Highlights from the Pitt Street Research Report:

Achiko AG: A Rising Telehealth Play
In 2020, Switzerland Stock Exchange listed Achiko (SWX: ACHI) became a health technology company with the rapid development of Teman Sehat, an open source software product that provides real COVID solutions. This was followed by ‘Gumnuts’, which, while not a software product, represents a potential step-change in terms of COVID testing. Following our evaluation report published on 31 August 2020, we have now prepared an in-depth report, including a valuation section, highlighting the financial opportunity for Achiko and its investors.

Investment Case
The investment case for Achiko lies in its breakthrough and world-class action on the COVID-testing solution. Achiko believes its Teman Sehat and Gumnuts technologies will help the company to achieve this goal.

Teman Sehat is a downloadable COVID testing, passport and access app that allows individuals and businesses to be able to better manage their COVID risk. It is now being rolled out in Indonesia. We see potential for Teman Sehat to become the COVID telehealth infrastructure for Indonesia, and beyond that to other emerging countries.

Achiko’s Gumnuts technology, on the other hand, allows very rapid and low-cost detection of viruses and bacteria from saliva using DNA aptamers. A COVID diagnostic has been developed from the technology and has now entered clinic validation trials. Achiko expects to be able to offer the diagnostic commercially before the end of 2020.

The Gumnuts technology is low-cost and user convenient, which means that it could be used to do frequent mass screening of whole populations. When combined with Teman Sehat, there can be a real-time information ecosystem alerting people to stay away from infection hotspots but allowing them to feel safe elsewhere. The result would allow economies affected by lockdown to be able to re-open safely.

Valuation of CHF 1.63 per share
We value Achiko at CHF 1.63 (approximately USD$1.77) base case and CHF 3.48 (approximately USD$3.79) bull case using a probability weighted DCF methodology. We see Achiko being re-rated by the market once it receives positive clinical trial results for its Gumnuts technology and the company further expands its Gumnuts testing. Key risks we see include: 1) clinical trials may miss its primary or secondary endpoints; 2) regulatory risk and 3) funding risk.

For more Information:

Achiko Investor Relations
Email: ir@achiko.com